X-Treme Co-op: Winner Takes All! - RAB.com | Radio … Co-op CBS Rivers… · ·...
-
Upload
phungnguyet -
Category
Documents
-
view
222 -
download
5
Transcript of X-Treme Co-op: Winner Takes All! - RAB.com | Radio … Co-op CBS Rivers… · ·...
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 1
www.RAB.com
X-Treme Co-op: Winner Takes All!
ON-AIR ONLINE ON-SITE ON DEMAND
Brandeis C. Hall ∙ VP/Training ∙ [email protected]
Calculating The Co-op
Some $50 billion of media advertising
is financed through co-op programs.
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 2
• On-Air
• Online
• Signage
• Events
• Promotions
Co-op is available for…
What Do We Sell Them?
And more things you haven’t even thought of…
Calculating the Co-op In your Market
$30 per capita x Market Population
Two-thirds is usually spent in local media
One-third goes unused
50,000 people x $30 = $1.5 million.
$1 million is used – $500,000 wasted.*
*Revenue Development Systems
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 3
Market # 26: Riverside-San Bernardino
Population: 1,975,600
Calculating the Co-op In Your Market
1,975,600 people x $30 = $59,268,000
$39,512,000 is used in local media
$19,756,000 is UNUSED.
Why Do Manufacturers Provide Co-op?
Armstrong World Industries Co-op Usage Study: Dealers
Group 2
+ no co-op funding
x 3 years
Results: Group 1 = 3 x greater sales growth
Group 1
+ co-op funding
x 3 years
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 4
Three Ways to Use Co-op Effectively
•Retail Programs
•Dealer Group Programs
•Distributor Programs
Three Ways to Use Co-op Effectively
Retail Programs
Work with a single retailer to use accruals from
one or more vendors to advertise multiple
products/services
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 5
The BIG Co-op Money is in:
Why Target Dealer Groups and Distributors?
• Better use of your time
• Volume – in aggregation of money
• More campaign options
• More brand options
• Better consumer engagement
Dealer Groups / Wholesale Distributors
Selling Dealer Groups
Does Market size matter?
Large markets:
• More retailers
• More dollars
= Bigger campaigns
Smaller markets:
• Per capita retailers
• Combined dollars
= media access
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 6
Three Ways To Use Co-op Effectively
Dealer Group Programs
Work with a single manufacturer to use
accruals from multiple retailers to advertise
one or more products.
Selling Dealer Groups
Sign up multiple retailers for a full year’s schedule
based on their joint allowances on:
• One product with high turnover (i.e motor oil)
• Different products that can be spotlighted
at different times of the year.
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 7
Integrated Co-op Programs:
What Do We Sell Them?
• Dealer-tagged commercials
• Micro-site & other digital options
• In-market station event options
• Relevant cause marketing affiliation
• Distributor-approved promotions
• Customized dealer newsletter
featuring upcoming opportunities
• Other options as desired.
• Step 1: Pick your category
Top Dealer Group / Distributor Categories:
• Appliances
• Automobiles
• Automotive Aftermarket
• Beverages (incl. liquor)
• Boats
• Building Materials
• Consumer Package Goods
• Electronics
• Farm Equipment
• Flooring
• Franchises
• Hardware
• Heating /AC (HVAC)
• Insurance
• Lawn and Garden
• Motorcycles (ATV / Water)
• Optical
• OTC Pharmaceuticals
• Paint
• Plumbing
• Power Tools
• Real Estate
Selling Dealer Groups
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 8
• Step 2: Select A Consumer-Motivating Theme
Summer Splash Auto Racing Winterize your car
Selling Dealer Groups
Example: Baquacil
Summer Splash Sweepstakes
Objective
• Drive traffic to local dealers
• Increase awareness of product
Idea
• In-store Consumer Sweepstakes program
(Register-to-Win free Doughboy pool / year supply of Baquacil)
• On air commercials
• POS displays
• Flyer distribution at events
• Remotes at Dealer locations
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 9
Step 3: Get an ‘Inside Man’
Selling Dealer Groups
Find the central source of merchandise…
…usually the manufacturer’s rep.
The rep knows:
Who are the biggest customers
How much merchandise each
retailer has bought
If other market funds are available
If you already have a good relationship with a retailer…
• Ask the retailer how the store usually makes contact.
When they need him in a hurry, how do they get
through? The store should have some shortcut to
suggest.
• Google / Bing
• Phone Book
Tracking Down the Elusive Manufacturer’s Rep…
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 10
The rep may travel extensively…
• Most national manufacturer representatives don’t have offices -- they work
out of their homes. Monday and Fridays are excellent days to reach them.
• Most travelling salespeople like to get home early on Fridays. This makes it
prime time to call. If you get the machine, the rep may be there, listening
and handling paperwork. Make yours the one the rep wants to return out of
curiosity.
• A day or two before a holiday weekend can actually be a good time. The
rep may return to the office early because it’s been a tough day to see the
retailers.
Tracking Down the Elusive Manufacturer’s Rep…
There’s nobody who responds to a good sales pitch better
than someone who sells. You have 30-seconds to register.
And sell a concept that will make money for both of you.
Selling The Manufacturer’s Rep…
• Use your own style.
• Be comfortable.
• Make sure it’s justifiable.
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 11
Have your elevator speech ready for the voicemail
• Who you are: “Hello, my name is _________________”
• Who you are with: “I am a broadcast marketing specialist WRAB”
• What you do: “I specialize in creating successful integrated promotions and
marketing programs using Radio.”
• Purpose of the call: “I am calling to arrange a time for us to meet to
• share how I can increase sales for you and your retailers.”
• Ask for the appointment: “Could we meet next Wednesday at 2:15?”
Tracking Down the Elusive Manufacturer’s Rep…
If your station is impressive, bring them there.
Use the show biz. Take them on a tour.
Seeing the station makes them feel comfortable with the
idea and gets them excited.
If the station isn’t the right place to meet, pick a restaurant.
Selling The Manufacturer’s Rep…
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 12
In Four Easy Steps…
• You and the rep co-sign a
letter inviting the dealers to
participate in a group
campaign. The letter
explains concept, timing
and price. You might
include a reply card.
Set Up The Group Meeting…
RAB.com Co-op Dealer Group Letter
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 13
In Four Easy Steps…
• You don’t want to go out and call on
all dealers individually. If the
territory is spread out, you may not
even want to have a meeting. With
the rep’s encouragement and help
on the phone, plus a follow-up letter,
many dealers may buy in by signing
and returning a simple contract.
Set Up The Group Meeting…
In Four Easy Steps…
• The rep may agree to sell the dealers
the concept while making sales calls on
is own. This is ideal for many sellers as
the ultimate time-saver.
• The rep may not agree to sell dealers
for you, but may participate in a
meeting with dealers which you
organize. You and the rep take turns
selling them in at the meeting.
Set Up The Group Meeting
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 14
Issue an invitation well in advance, mention refreshments. Many
meetings include raffles.
Sell with lots of enthusiasm and sizzle. If you can, bring ‘em to
the station. Otherwise, book a nice hotel.
Whoever is charged with selling the dealers individually
(you or the manufacturer’s rep) makes the pitch.
Dealers are asked to sign up at this meeting
Tips For The Group Meeting
Present Using Co-op As Means for Expansion
Co-op should always be positioned as a means of
expanding, and not reducing an ad program.
• Banner sponsorship
• Audio commercial
• Video commercial
• Pre-rolls
• Player banner ads
• Player sponsorships
Working The Group Meeting
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 15
Dealer Co-op For Sponsorships
• Marketing Tools (including)
• Formula 1 display car
• C6 Corvette display car
• Video race car simulator
• BIGFOOT® monster truck
• Banners
• Displays
• Mailers
• Radio scripts
• Print ads
• Etc.
Dealer Co-op For Sponsorships
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 16
Using Incentives
Use Incentives:
In many markets, dealers are given incentives for participation.
The manufacturer wants their dealers to advertise.
They want enthusiasm and momentum.
The station and manufacturer create a gift-with-purchase deal.
Build the trip price into the package…and buy the trip at a
discount via a quantity purchase.
Dealer Incentive Example:
Gift-With-Purchase
• Every dealer who buys on site, receives a trip
• Dealers like association w/station and manufacturer
• Manufacturer strengthens relationships w/ dealers
• Station has more participants = more co-op dollars
• Station trades out trip or buys at volume discount
Using Incentives
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 17
Using Incentives
Incentive Pricing:
Apportion 10% of the package cost for incentives and mark
up the package price to cover it. Make it clear on the invoice
and work it out in advance with the manufacturer’s
representative or regional distributor.
Some co-op programs will actually pay for a trip used as a
consumer prize.
Consumer Incentive Example:
Kwikset Locks
• 1000 keys are given away through Kwikset retailers
• Consumers draw a key and try to open a door
• The lucky key holder wins a trip
• The cost of the trip is written into the campaign
• Dealers are pleased with additional store traffic
Using Incentives
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 18
Three Ways To Use Co-op Effectively
Wholesale Distributor Programs
Work with a single wholesale distributor to
use accruals to advertise one or more
products from multiple vendors
Step 1: Pick your category
Top Dealer Group / Distributor Categories:
• Appliances
• Automobiles
• Automotive Aftermarket
• Beverages (incl. liquor)
• Boats
• Building Materials
• Consumer Package Goods
• Electronics
• Farm Equipment
• Flooring
• Franchises
• Hardware
• Heating /AC (HVAC)
• Insurance
• Lawn and Garden
• Motorcycles (ATV / Water)
• Optical
• OTC Pharmaceuticals
• Paint
• Plumbing
• Power Tools
• Real Estate
Selling Distributors
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 19
Step 2: Select A Consumer-Motivating Theme
Home Improvement
Sporting Events Themed Holidays
Selling Distributors
Distributor Co-op Online
March Madness Pick & Win
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 20
Distributor Co-op Online
Branded w/ Heating & Air Distributor to the tune of $25,000
March Madness Pick & Win
Step 3: Make Contact
Selling Wholesale Distributors
• Represent multiple brands
• Have powerful sales forces
• Always have co-op funds available
Wholesale Distributors…
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 21
Selling Wholesale Distributors
Wholesale Distributors…
They buy the goods.
They own the inventory.
They own the co-op.
In Four Easy Steps…
• Present the wholesale distributor the
concept.
“We put together an integrated campaign to
use your co-op effectively.”
We help you sell in and sell through.”
• Distributor hosts manufacturer’s
representative meeting. Manufacturer
reps agree to support program.
Selling The Wholesale Distributor
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 22
In Four Easy Steps…
• Wholesale distributor’s sales reps
communicate program details to
retailers.
• Retailers agree to buy more
product and comply with
promotion details.
Selling The Wholesale Distributor
Objective • Increase awareness of product
• Drive traffic to 25 local dealers
Idea • Microsite (www.needcountertops.com)
– (Product information, answers to questions, videos, prizes)
• On air commercials
• Social networking (Facebook & Twitter)
• SEO and SEM (Google AdWords)
• Distribution of brochures & countertop samples
• Dealer breakfast
Co-op Case Study: Fessenden Hall, Inc
Courtesy of…
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 23
Co-op Case Study: Fessenden Hall, Inc
Results • Campaign’s 1st month was one dealer’s best
month since 1965
• Distributor experienced increased sales
Co-op Case Study: Fessenden Hall, Inc
Courtesy of…
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 24
Distributor Co-op Banner Ads
• Banner sponsorship
• Audio commercial
• Video commercial
• Pre-rolls
• Player banner ads
• Player sponsorships
Distributor Co-op Sponsorships
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 25
Distributor Co-op For Events
Dealer listings
Current
Happenings
Special Offers
Upcoming Options
Recaps /
Successes
Create a Turn-key program
• Target-market research – Educate yourself on
the client’s industry and market.
• Preparing detailed media plans – Adhere to budget guidelines.
• Making the process as effective and efficient as possible – Take the burden off of the distributor/corporation and dealer/owner for co-op marketing.
• Monitor, track and report performance – Be accountable for results and keeping participants on track.
• Offer alternatives to traditional media – Uncover turn-key avenues that have not been previously explored.
Formula For Success
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 26
RAB Co-op Directory
Cancellations and Changes To Existing Co-op Programs.
It is the manufacturer’s prerogative to change the marketing or program
any time they desire.
Many manufacturers have put their programs on moratorium during the
recent economic downturn but will re-activate them as the economy
improves.
The RAB is adding programs almost daily. Your leads help.
When you find a program or change to a plan not in the directory, send
in the lead!
Three Ways to Use Co-op Effectively
•Retail Programs
•Dealer Group Programs
•Distributor Programs
X-Treme Co-op: Winner Takes All! RAB Webinar May 2012
Radio Advertising Bureau
www.rab.com
Copyright 2012
Page 27
Questions?
www.RAB.com
X-Treme Co-op: Winner Takes All!
ON-AIR ONLINE ON-SITE ON DEMAND
Brandeis C. Hall ∙ VP/Training ∙ [email protected]